Current Account Surplus Seen

External commercial borrowings reached $2.78 bn by the end of December

The Economic Survey for 2002-03 says the current account balance of the country is likely to end with a surplus, given the latest trends in the various components of balance of payments.

The survey says external commercial borrowings in 2002-03 reached $2.78 billion by the end of December, compared to $2.65 billion approved for 2001-02.

It adds that while the redemption of Resurgent India Bonds would lead to a surge in repayments, a substantial part of the bond proceeds might be put back in the domestic economy by reinvesting in the non-resident deposits, which would further reduce the pressure on forex reserves.

Quoting RBI data, the survey says the buoyancy in the current account was due to increased private remittances and software exports.

It adds that remittances to the country from overseas are now consistently higher by